Can premiums be deferred?
It depends on the insurer. A small number defer premiums until the conclusion of the case (and the premium is only payable if the case is successful, in much the same way as a success fee). If a premium is not deferred, it is common for insurers to offer some kind of funding alternative. Subject to the firm registering with a specified lender, the premium and other disbursements are paid by a bank and then repaid at the conclusion of the case: either by the client out of the proceeds of the claim or by the insurer if the case is lost. Usually, no interest charges are payable as the case progresses so the effect is the same as having the premium deferred. The main difference is that the interest charges on any loan are not recoverable.
